Maintaining silence: Powell speaking about the semi-annual Monetary Policy Report to the Congress in Washington. There’s a school of thought that says the central bank chairman will steer away from pointing to any specific meeting for the first cut. — Reuters
NEW YORK: Bond traders who’ve set themselves up for gradual interest rate cuts starting in September are ramping up side bets in case a sudden slide in the US economy forces the US Federal Reserve (Fed) to be even more aggressive.
As treasuries advanced for a third-straight month, investors are fully pricing in at least two quarter-point rate reductions this year, slightly more than what policymakers have telegraphed.
